Tax Code Changes

For 2012–13 the basic Personal Allowance will be £8,105 and the basic rate limit will be £34,370.

The new threshold (starting point) for PAYE is £156 per week (£675 per month).

The new emergency code is 810L.

Tax rates and bandwidths are:

Rate % Bandwidth

Basic Rate 20% £1 to £34,370

Higher Rate 40% £34,371 to £150,000

Additional Rate 50% £150,001 and above

All employee’s with an L tax code will have 63 added to this year’s tax code, for example 747L now becomes 810L. All unusual tax code will be sent out on a P9(T). (If you are a client and you have received any of these please could you forward them to the office as soon as possible).